GSTN set to suspend GSTIN over this compliance violation

GSTN, on 20 November 2025, issued a new advisory emphasizing that taxpayers must furnish their bank account details in accordance with Rule 10A of the CGST Rules, 2017. This obligation covers all registered persons, excluding TCS/TDS applicants and individuals who were granted GST registration through suo-moto action by the department.

What Does Rule 10A of the CGST Rules Mean?

Rule 10A requires that every GST-registered taxpayer—except a few specified categories—must provide their bank account details within 30 days of obtaining GST registration or before filing their first outward supply return (GSTR-1 or IFF), whichever occurs earlier.

Latest Update Issued on 20 November 2025

GSTN has announced that strict enforcement of Rule 10A will soon be activated on the GST portal.

Important points from the advisory:

✔ Mandatory Submission Timeline

Bank account details must be furnished:

  • Within 30 days of receiving GST registration,
    OR

  • Before filing GSTR-1 or IFF,

whichever condition is met first.

✔ Who Needs to Follow This Requirement?

All GST-registered persons except the following:

  • TDS deductors (under Section 51)

  • TCS collectors (under Section 52)

  • Taxpayers who received GSTIN through suo-moto registration (Section 62)

✔ What Happens If You Don’t Update Your Bank Details?

Failure to comply may result in suspension of the GST registration on the portal.

Possible consequences include:

  • Inability to file GST returns

  • Blocking of e-way bill generation

  • Restriction on making outward supplies

  • Risk of cancellation proceedings

Taxpayers are strongly encouraged to update their bank details promptly to prevent any operational or compliance-related disruptions.

Why Has GSTN Issued This Advisory at This Stage?

GSTN has released this clarification due to a growing number of instances where:

  • GST registrations are obtained without any real business operations

  • GSTINs are created without linking a valid bank account

  • Fake invoices are generated even before verification is completed

  • Refunds are claimed without proper banking trails or genuine transactions

By tightening compliance under Rule 10A, GSTN aims to:

✔ Detect fake invoicing networks at an early stage
✔ Prevent fraudulent or non-genuine registrations
✔ Reduce refund frauds and misuse of input tax credit (ITC)
✔ Strengthen taxpayer verification and system reliability

This measure aligns with the Government’s ongoing efforts to enhance the transparency and credibility of the GST framework.

Penalties and Consequences for Not Complying with Rule 10A

If a taxpayer does not update their bank account details within the prescribed timeline, the following actions may occur:

1️⃣ GST Registration May Be Suspended

Your GSTIN will shift to a “Suspended” status, immediately affecting business operations.

2️⃣ GSTR-1 Filing Will Be Blocked

You won’t be able to report outward supplies, which affects your customers and hampers regular business activity.

3️⃣ E-Way Bill Services Will Be Disabled

Movement of goods gets restricted because the portal blocks e-way bill generation.

4️⃣ Department May Issue Notices

The GST department may initiate cancellation proceedings under Rule 21.

5️⃣ Customers’ ITC May Get Affected

If your registration is suspended, the ITC of your buyers may be blocked, leading to disputes and compliance issues.

How to Update Bank Account Details on the GST Portal (Step-by-Step)

Bank details must be updated through a Non-Core Amendment on the GST Portal.

Step 1: Log In

Visit gst.gov.in and sign in using your credentials.

Step 2: Open the Registration Section

Go to:
Services → Registration → Amendment of Registration (Non-Core Fields)

Step 3: Choose the ‘Bank Accounts’ Tab

Enter the following information:

  • Account holder’s name

  • Account number

  • IFSC code

  • Bank name

  • Supporting proof (cancelled cheque/passbook/bank statement)

Step 4: Upload Proof

Make sure the uploaded document clearly shows:

  • Account number

  • Name of the account holder

  • IFSC code

  • Bank name

Step 5: Verify & Submit

Submit the amendment using DSC or EVC.
An ARN will be generated after submission.
If the details match PAN records and GST data, approval is usually automatic.

Which Documents Are Accepted as Valid Proof?

The GST Portal permits the following documents as proof of bank account details:

  • A cancelled cheque

  • The first page of the bank statement

  • The first page of the passbook

The document must clearly display the account holder’s name, account number, IFSC code, and bank name.

Common FAQs for Taxpayers and Professionals

1️⃣ Can a savings account be used?

Yes. Proprietors may use a savings account, although opening a current account is preferable for business transactions.

2️⃣ Is a joint bank account allowed?

No. The bank account must be solely in the name of the person or entity holding the GST registration.

3️⃣ What if the bank account has not been opened yet?

Open the account and update the information at the earliest. Delays may result in registration suspension.

4️⃣ Can a taxpayer begin business without updating bank details?

No. GSTR-1 filing is blocked until bank account details are added.

5️⃣ What if incorrect bank details were submitted?

You must revise the information through a Non-Core Amendment. Incorrect details can also trigger suspension.

The GSTN advisory issued on 20 November 2025 clearly indicates that providing bank account information under Rule 10A is no longer optional—it is a mandatory compliance requirement directly tied to maintaining an active GST registration.

Taxpayers and practitioners should ensure the details are updated promptly to avoid disruptions.

Taxation of GTA Services under GST and Application of RCM

Definition of a GTA

A Goods Transport Agency is defined as a person providing road transport services for goods and issuing a consignment note.
If a transporter does not issue a consignment note, they are not considered a GTA, and their services are not liable to GST.
Thus, independent truck or tempo owners who do not provide consignment notes are typically not classified as GTA.

GST Taxability Framework for GTA Services (Revised up to 22.09.2025)

Tax Structure

Category GST Rate ITC Availability Person Liable to Pay Tax
RCM (Reverse Charge Mechanism) 5% ITC available to the recipient Recipient of service
FCM (Forward Charge Mechanism) 18%* Full ITC allowed GTA
FCM – Optional Concessional Rate 5% No ITC for the GTA GTA

*Prior to 22.09.2025, the applicable rate was 12% with ITC.

Key Points

A GTA must choose the Forward Charge option (18%) every year by submitting Annexure V on the GST portal.
If the GTA wishes to discontinue the option, Annexure VI must be filed; otherwise, the GTA will continue under the default RCM structure (5%).
Once selected, the option remains valid for the entire financial year.

GTA must also include a declaration on invoices when opting for Forward Charge.

Mandatory Invoice Declaration (for Forward Charge)

When a GTA chooses to pay GST under Forward Charge, they must include the declaration as specified in Annexure III of Notification 13/2017, inserted through Notification 5/2022–Central Tax (Rate) dated 13-07-2022 (effective from 18-07-2022).

Declaration:
“I/We have obtained registration under the CGST Act, 2017 and have opted to pay GST on GTA services for transportation of goods under Forward Charge from the Financial Year ______. We have not switched back to the Reverse Charge Mechanism.”

Liability to Pay GST under RCM

GST under the Reverse Charge Mechanism (RCM) becomes payable when the freight charges are borne by any of the following types of recipients:

  • A factory

  • A society

  • A cooperative society

  • A body corporate

  • A GST-registered person

  • A partnership firm or an Association of Persons (AOP)

  • A casual taxable person

If the freight is paid by an unregistered customer, the GTA will need to charge 18% GST under Forward Charge (only if the GTA has opted for FCM).
If the GTA has not opted for Forward Charge, the service continues to be exempt for unregistered recipients as per GTA provisions.

Situations Where RCM Does Not Apply

The Reverse Charge Mechanism (RCM) is not applicable to GTA services when goods are transported by road in a goods carriage to the following entities:

(a) Any department or establishment of the Central Government, State Government, or Union Territory;
(b) Any local authority;
(c) Any governmental agency,

provided that such entities are registered under the CGST Act solely for the purpose of TDS compliance under Section 51, and not for carrying out taxable supplies of goods or services.

Important Note

These services are exempt from GST under Entry 21B of Notification 12/2017, meaning no GST liability arises in such cases.

GTA Service Exemptions

The following categories of transportation services provided by a Goods Transport Agency remain exempt from GST:

  • Transport of agricultural produce

  • Milk, food grains, and salt

  • Organic manure

  • Newspapers

  • Relief or disaster-related materials

  • Defence-related goods transported for the Government

  • GTA services provided to an unregistered individual, including an unregistered casual taxable person

Place of Supply Rules for GTA Services

  • If the recipient is registered: The place of supply is the location of the recipient.

  • If the recipient is unregistered: The place of supply is the location where the goods are handed over to the GTA for transportation.

✅ Your Complete Guide to Filing the GSTR-9 Annual GST Return for FY 2024-25

GSTR-9 is one of the most crucial annual filings under the Goods and Services Tax (GST) framework. It presents a consolidated summary of a taxpayer’s outward supplies, inward supplies, input tax credit (ITC), taxes paid, and all reconciliations carried out throughout the year. For FY 2024-25, the GST portal has introduced several new validations, reporting updates, and system checks—making accuracy more important than ever for businesses and tax professionals.

This guide covers everything you need to know about GSTR-9, including its purpose, eligibility, due dates, detailed table-wise instructions, new FY 2024-25 changes, common errors, essential checklists, and expert recommendations for smooth and compliant filing.

1. What is GSTR-9?

GSTR-9 is the annual GST return that compiles:

  • The outward supply data reported in GSTR-1

  • Tax liability and ITC information furnished through GSTR-3B

  • Auto-populated details from GSTR-2B

  • Figures drawn from the taxpayer’s books of accounts

This annual summary acts as a comprehensive reconciliation statement and is a critical document during departmental audits, scrutiny reviews, and assessment proceedings.

2. Who Is Required to File GSTR-9?

The following categories of registered persons must file GSTR-9 for FY 2024-25:

  • Regular GST taxpayers

  • SEZ units and developers

  • Businesses with an annual turnover above ₹2 crore

Exempt from filing GSTR-9:

  • Composition taxpayers (who file GSTR-4 instead)

  • Input Service Distributors (ISD)

  • Non-resident taxable persons

  • Casual taxable persons

3. GSTR-9 Due Date for FY 2024-25

The deadline for submitting GSTR-9 for FY 2024-25 is 31st December 2025, unless extended by the government.

Delays can result in substantial late fees under Section 47 of the CGST Act—especially for businesses with higher turnover—making early reconciliation and preparation essential.

4. Key Updates in GSTR-9 for FY 2024-25

For FY 2024-25, the Government has introduced multiple new reporting sections and revised the structure of existing tables in GSTR-9. These updates are designed to strengthen reconciliation across books, GSTR-1, GSTR-3B, and GSTR-2B. They also help capture cross-year ITC movements more accurately and reduce mismatch-based notices.

1. New Table 6A1 – ITC of Earlier Year Claimed in FY 2024-25

Earlier, all ITC availed during the year was clubbed under a single Table 6A.
Now, a separate Table 6A1 has been introduced to disclose:

  • ITC relating to FY 2023-24

  • Claimed during FY 2024-25

  • Except ITC reclaimed under Rule 37 / 37A

This helps distinguish between current-year ITC vs. past-year ITC, improving audit accuracy.

2. Table 6A Split into 6A1 & 6A2

The earlier consolidated Table 6A now has:

  • 6A1: ITC pertaining to previous year but claimed now

  • 6A2: ITC relating exclusively to FY 2024-25

This split ensures clearer classification and reduces reconciliation errors.

3. Table 8A Revised – Displays Only FY-Specific Data

Table 8A will now show only those invoices that belong to FY 2024-25, even if the supplier reports them late (April–Oct 2025).

This helps avoid:

  • Unwanted mismatches

  • Wrong ITC eligibility assumptions

  • Errors during audit or scrutiny

4. New Table 8H1 – Import ITC Claimed in the Next FY

A new table 8H1 has been added to capture:

  • ITC on imports related to FY 2024-25

  • But claimed in FY 2025-26

This ensures accurate matching with ICEGATE and prevents excess ITC claims.

5. Table 9 Enhanced – Auto-Detects Tax Gaps

Table 9 has been redesigned with:

  • A new field for Total Tax Paid

  • A comparison field showing the difference between tax payable and paid

Any shortfall is flagged as pending liability, which may require payment via DRC-03.

6. Additional Breakups Added in Table 7 – ITC Reversals

Table 7 now separately shows reversals under:

  • Rule 37 (non-payment to supplier)

  • Rule 37A (mismatch-based reversals)

  • Rule 42 & 43 (proportionate & capital goods ITC)

  • Blocked ITC u/s 17(5)

Earlier, these were clubbed together; now they’re clearly segregated.

7. Updated Validations in Tables 10 & 11 – Amendments

Tables 10 & 11 still capture amendments relating to FY 2024-25 reported later, but with stronger validations:

  • Only correct-year amendments allowed

  • Wrong-year reporting will trigger errors or notices

8. Tables 12 & 13 – Tighter Cross-Year ITC Tracking

  • Table 12: ITC of FY 2024-25 reversed in FY 2025-26

  • Table 13: ITC relating to FY 2024-25 claimed in FY 2025-26

This ensures complete traceability of ITC movements across financial years.

9. New Excel Download – HSN-Wise Outward Supply Summary

A downloadable file for HSN-wise details of outward supplies is now available to simplify reporting and reduce manual errors.

November 2025 Compliance Calendar: All GST, Income Tax & MCA Due Dates Explained

November 2025 brings a packed compliance schedule for businesses and professionals alike.
This month combines several overlapping deadlines — from GST returns and Income Tax audits to annual filings under the MCA.
To ease the pressure on taxpayers and corporates, authorities have granted notable extensions and relaxations, particularly concerning audit-related filings and MCA compliances.

🔹 1. MCA / ROC Compliances (As per Latest Relaxation)

✅ Revised Filing Deadlines
The Ministry of Corporate Affairs (MCA) has granted an extension for submitting AOC-4, AOC-4 XBRL, AOC-4 CFS, AOC-4 NBFC (Ind AS), and MGT-7 / MGT-7A forms for FY 2024–25.
Companies can now file these forms till 31 December 2025 without incurring any additional filing fees.
This move is intended to facilitate a smoother transition to the new MCA V3 e-form system and reduce last-minute filing congestion on the portal.

⚠️ Note:
This relaxation applies only to filing fees and does not extend the AGM due date. All companies must have conducted their AGM within the prescribed period (typically by 30 September 2025). The waiver covers late fees only, not the delay in AGM itself.

📋 Professional To-Do List

  • Submit all AOC and MGT forms by 31 December 2025 to utilize the relaxation.

  • Make sure AGM minutes, board resolutions, and financial statements are properly finalized and signed before uploading.

  • If the AGM was not held on time, guide your client to apply for condonation or file compounding as per law.

🔹2. Income Tax Due Date Extension — CBDT Circular No. 15/2025

The Central Board of Direct Taxes (CBDT) has provided much-needed relief to taxpayers by extending key Income Tax compliance deadlines for the Assessment Year 2025–26.
This move comes after several professional associations and High Court interventions highlighted difficulties caused by portal issues and increased audit-reporting requirements.

✅ Revised Deadlines

Filing / Report Earlier Due Date Extended Due Date
Tax Audit Report (Form 3CA/3CB–3CD) 31 October 2025 10 November 2025
Income Tax Return (Audit Cases) 30 November 2025 10 December 2025

The CBDT has clarified that these extensions are intended to ease compliance pressure on businesses and professionals during the busy audit season.

⚙️ Key Action Points for Practitioners

  • Complete and upload Tax Audit Reports by 10 November 2025.

  • File Income Tax Returns for audit cases by 10 December 2025.

  • For Transfer Pricing cases, align Form 3CEB filing with the extended ITR deadline (expected 10 December 2025).

  • Reconcile all figures in AIS / TIS / Form 26AS before submission to avoid mismatch or notice generation.

These extensions give professionals some breathing room — but it’s crucial to plan filings early to avoid last-minute portal congestion.

🔹3.GST Compliance Deadlines for November 2025 (Covering October Transactions)

Th.e GST compliance calendar for November 2025 follows the regular filing cycle, covering returns related to October 2025. Businesses must ensure timely submission to avoid late fees and interest.

Form Purpose Due Date
GSTR-7 TDS under GST 10 November 2025
GSTR-8 TCS by E-commerce Operators 10 November 2025
GSTR-1 Details of Outward Supplies (Monthly Filers) 11 November 2025
GSTR-5 / GSTR-6 NRTP / ISD Returns 13 November 2025
GSTR-3B Monthly Summary Return & Tax Payment 20 November 2025
PMT-06 Monthly Payment for QRMP Taxpayers 25 November 2025

📋 Action Points for Professionals

  • Review and reconcile October invoices before filing GSTR-1.

  • Match Input Tax Credit (ITC) from GSTR-2B prior to submitting GSTR-3B.

  • Ensure QRMP taxpayers complete their PMT-06 payments by 25 November 2025.

  • Begin early reconciliation for FY 2024–25 annual filings — GSTR-9 and GSTR-9C are due by 31 December 2025.

 

GST Registration: Required Documents Guide

Introduction

Getting your business registered under GST is one of the first steps toward becoming a compliant and recognized enterprise in India. Whether you’re starting a new venture, expanding operations across states, or selling through e-commerce platforms, GST registration provides you with a unique identification number (GSTIN) to legally collect and remit taxes.

To make the process hassle-free, it’s important to know exactly which documents are required before you apply. Below is a complete list of documents you’ll need for GST registration based on your business type.

🔹 1. Basic Documents Required for All Applicants

Regardless of the business type, the following documents are mandatory for GST registration:

Document Type Purpose / Description
PAN Card Permanent Account Number of the applicant — individual, company, or firm.
Aadhaar Card Mandatory for Aadhaar authentication of the proprietor, partners, directors, or authorized signatory.
Photograph Passport-size photo of the proprietor, partner, director, or trustee.
Proof of Business Address Based on ownership type — ownership, rent, lease, or shared premises. Examples: Rent Agreement with NOC from owner, Electricity Bill, or Property Tax Receipt.
Digital Signature (DSC) Compulsory for Companies and LLPs for verification. Other entities may use EVC (OTP) for authentication.

🔹 2. Proof of Business Place

The document required for business address proof depends on the nature of property ownership:

Ownership Type Documents Required
🏠 Owned Property • Latest Property Tax Receipt, or
• Electricity Bill, or
• Municipal Khata Copy
🏢 Rented / Leased Property • Rent Agreement or Lease Deed (in business or applicant’s name), and
• Electricity Bill or Property Tax Receipt of the owner
🤝 Shared Premises • Consent Letter or No Objection Certificate (NOC) from the owner, and
• Supporting ownership proof (e.g., Electricity Bill or Property Tax Receipt)

🔹 3. Business Type-Wise Documents

Business Type Documents Required
🧑‍💼 (A) Proprietorship Firm • PAN and Aadhaar of proprietor
• Photograph of proprietor
• Proof of business address
👥 (B) Partnership Firm / LLP • Partnership Deed or LLP Agreement
• PAN of firm / LLP
• PAN & Aadhaar of all partners/designated partners
• Photographs of all partners
• Proof of business premises
• Authorisation Letter / Board Resolution appointing authorised signatory
🏢 (C) Private Limited / Public Limited Company • Certificate of Incorporation (CIN) issued by MCA
• Memorandum (MOA) & Articles of Association (AOA)
• PAN of company
• PAN & Aadhaar of all directors
• Board Resolution authorising a director as authorised signatory
• Digital Signature Certificate (DSC) of authorised signatory
• Proof of principal place of business
🙏 (D) Trust / Society / NGO • Registration certificate of trust/society
• PAN of entity
• PAN & Aadhaar of trustees/office bearers
• Proof of business address
• Authorisation letter for authorised signatory

🔹 4. Additional Documents (If Applicable)

Situation Additional Documents Required
🏭 SEZ Unit / Developer SEZ Letter of Approval issued by Government of India
🧾 Casual Taxable Person Valid ID proof, details of business, and estimated turnover
🌍 Non-resident Taxable Person Passport and proof of business in India
🛒 E-commerce Seller Agreement with e-commerce operator (if applicable)

🔹 5. Aadhaar Authentication (Mandatory Since 2020)

  • Aadhaar authentication is mandatory for all individuals such as proprietors, partners, or directors.

  • It enables fast-track approval within 3 working days under the simplified registration process (Rule 8 & 9).

  • Failure to authenticate Aadhaar may lead to physical verification of business premises by the department.

🔹 6. Document Upload Guidelines

📂 Accepted Formats: Upload files only in PDF or JPEG format. Each file should not exceed 1 MB.
🧾 Clarity Matters: Make sure all scanned copies are readable and details are visible without blur or shadow.
🪪 Name Consistency: The name on your uploaded documents must match exactly with the name on your PAN and Aadhaar records.
💡 Utility Proof Validity: Upload a recent utility bill (issued within the last 2 months) for address verification.
🏷️ Business Name Accuracy: Ensure your trade name or business name matches your PAN registration. If different, specify clearly in the application.
🔐 Digital Verification: Use the Digital Signature Certificate (DSC) or EVC OTP carefully during submission to avoid rejection.

 

 

 

 

 

 

 

GST Registration Made Faster! Small Businesses Can Now Get GST Number Within 3 Days Under New Rule 14A

🧾 Simplified GST Registration Under Rule 14A (Effective from 1st November 2025)

Starting 1st November 2025, the Government has rolled out a streamlined GST registration process under Rule 14A of the CGST Rules, 2017 — designed to make registration quicker and more efficient for small and low-risk businesses.

Under this new mechanism, eligible applicants can now receive auto-approval of their GST registration within 3 working days, significantly cutting down on manual scrutiny and long processing times.

🔍 Understanding Rule 14A

Rule 14A introduces a simplified and optional registration pathway for businesses whose monthly Input Tax Credit (ITC) to be passed on is ₹2.5 lakh or less.

When applying for GST registration, applicants will now see a new choice on the GST portal:

👉 “Apply under Rule 14A – Yes / No”

Selecting “Yes” enables the applicant to register through the fast-track approval system, ensuring quicker processing and minimal manual intervention.

🧾 Purpose Behind Rule 14A

The Rule 14A Scheme has been introduced with the following objectives:

  • ⚡ Speed up GST registration by simplifying procedures and reducing waiting time.
  • 🎯 Prioritize scrutiny only for high-risk or suspicious registrations.
  • 🤝 Support small and genuine businesses by offering hassle-free registration.
  • 🚀 Enhance ease of doing business and cut down compliance pressure for startups and MSMEs.

🧑‍💼 Who Can Apply Under Rule 14A?

You are eligible for registration under this scheme if you meet all of the following criteria:

  • 💰 The total ITC to be passed on does not exceed ₹2.5 lakh per month.

  • 🧾 Your business is classified as low-risk by the GST system analytics.

  • ✅ Aadhaar verification of the applicant has been successfully completed.

  • 🆕 The application is for a new GST registration, not for modification or re-registration.

📌 Note: Choosing Rule 14A is optional. Businesses with higher ITC or complex operations can continue with the standard registration process.

⚙️ Salient Features of the Revised GST Registration Process

Particulars Earlier System New Rule 14A System
⏱️ Processing Time Up to 7 working days (may extend if verification needed) Auto-approval within 3 working days for eligible applicants
🏢 Physical Verification Conducted frequently Required only if system flags risk
💰 Eligibility Limit No fixed threshold Applicable when ITC to be passed ≤ ₹2.5 lakh/month
🪪 Aadhaar Authentication Optional in some cases Compulsory for all applicants
👥 Target Applicants All categories of taxpayers Small and low-risk businesses
🔎 Scrutiny Level Standard departmental review Limited scrutiny through system-based checks

📌 Steps to Apply under Rule 14A

1️⃣ Visit the GST Portal and open the New Registration (Form Part A) section.
2️⃣ Select “Yes” when prompted — “Do you want to register under Rule 14A?”
3️⃣ Complete Aadhaar authentication instantly using OTP verification.
4️⃣ Fill in all required details — business, bank account, place of business, and upload supporting documents.
5️⃣ Once submitted, your application will be auto-approved within 3 working days, provided you meet eligibility conditions.
6️⃣ If you choose “No”, your registration will proceed through the standard verification and approval route.

🧮 Example

Suppose Ms. Neha plans to open a small garment wholesale business with projected monthly sales of ₹ 12 lakh, primarily supplying to registered buyers (B2B).
Her output GST liability on these sales comes to about ₹ 2.1 lakh per month.

Because the ITC passed on is below ₹ 2.5 lakh per month, Ms. Neha qualifies for registration under Rule 14A.
After completing Aadhaar verification, her GST registration will be auto-approved within 3 working days, without any physical verification.

⚠️ Important Things to Remember

  • Aadhaar authentication is compulsory to avail this simplified registration route.
  • The ₹ 2.5 lakh limit applies only to ITC passed on, not to overall turnover or sales.
  • This facility is meant only for fresh registrations, not amendments or re-registrations.
  • If your ITC later exceeds ₹ 2.5 lakh per month, your account may move to the standard verification process.
  • While registration is faster, all regular GST compliances—such as return filing, invoicing, payments, and audits—remain mandatory.
  • Any false declaration or misuse of this scheme can result in cancellation of GSTIN or further departmental scrutiny.

💡 Why Rule 14A Is Important

The introduction of this rule highlights the government’s focus on:

  • Streamlining GST registration for honest and compliant small businesses.
  • Leveraging data analytics to identify and fast-track low-risk applicants.
  • Enhancing compliance efficiency while cutting down manual delays and intervention.
  • Empowering startups and MSMEs by promoting faster onboarding and greater ease of doing business.

📅 Effective Date

The simplified GST registration system under Rule 14A will come into effect from 1st November 2025.
New applicants registering on or after this date can choose this route if they meet the eligibility criteria for small or low-risk businesses.

Due Dates Extended! For MCA, GST & Income Tax

As we move into October 2025, the compliance season is in full swing — with multiple due dates for MCA filings, GST returns, TDS statements, and Tax Audits, all overlapping with the Diwali festive season. At the same time, several representations and court orders have led to extensions or expected relaxations for various filings. Let’s go through all updates and due dates one by one

 1️⃣ MCA — Extension for Annual Filings & DIR-3 KYC

  • The Ministry of Corporate Affairs (MCA) has extended the due date for filing e-Form DIR-3 KYC and web form DIR-3 KYC-WEB without additional fees up to 31st October 2025

✳️ Practical Tip:

✅ File your Director KYC before 31st October to avoid the ₹5,000 late fee.
✅ Companies should also begin preparing their Form AOC-4 (Financial Statements) and MGT-7/MGT-7A (Annual Return), as these are due soon after AGM closure (generally within 30 or 60 days of AGM).

 

 2️⃣ Income Tax — Extension Expected for Audit & ITR Filing

  • Several High Courts have directed the CBDT to extend the due dates for ITR filing for audit cases.

Though official CBDT notification is awaited, these extensions are expected considering the heavy compliance load and technical portal issues.

✳️ Practical Tip:

✅ Don’t wait for the official circular — start finalizing audits and ITRs now.
✅ If notified, file by the new dates to avoid penalty under Section 271B.

 

 3️⃣ GST — Possible Extension for GSTR-3B (September 2025 Period)

  • Professional bodies such as BCAS and ICAI have requested an extension of GSTR-3B filing for the September 2025 period, due to Diwali holidays and the rollout of new GST changes (IMS & refund automation).
  • The government is reportedly considering extending the due date from 20th October 2025 to 25th October 2025.
  • Though not yet officially notified, such extensions around the festive period are quite possible.

✳️ Practical Tip:

✅ File GSTR-1 (Monthly) by 11th October 2025 and Quarterly by 13th October 2025.
✅ Plan GSTR-3B filings early to avoid Diwali-week portal rush.

 

 4️⃣ TDS, TCS & Other Key Compliance Due Dates (October 2025)

📅 Due Date 📘 Compliance
7th October 2025 Deposit of TDS/TCS deducted for September 2025
31st October 2025 DIR-3 KYC & Web KYC (MCA) — Extended date
15th October 2025 TCS Return filing
31st October 2025 Filing of TDS Return for Q2 (Form 24Q/26Q/27Q)
31st October 2025 Filing of Tax Audit Report
20th October 2025 GSTR-3B for September 2025 period
GST amnesty Scheme 2025: Take its benefit without payment of Tax

The Government of India, through the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a GST Amnesty Scheme 2025. This scheme provides relief to taxpayers by waiving penalties and interest for certain past GST liabilities. The changes have been incorporated through Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017. The scheme applies to tax demands for the period from 1st July 2017 to 31st March 2020.

 

 

This article provides a detailed breakdown of the scheme, its eligibility criteria, benefits, procedural aspects, and clarifications issued by the CBIC through Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax.

 

  • Circular No. 248/05/2025-GST
  • Notification No. 11/2025-Central Tax

Key Highlights of the GST Amnesty Scheme 2025

  • New Section 128A inserted into the CGST Act, 2017, allowing waiver of interest, penalty, or both for past tax demands.
  • Rule 164 added to the CGST Rules, 2017, to provide procedural guidance for availing benefits.
  • Applicable for tax demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020.
  • Taxpayers need to make payments using FORM GST DRC-03 or other prescribed methods.
  • The scheme is effective from 1st November 2024.

Eligibility for Amnesty Benefits

As per Circular No. 248/05/2025-GST, the following categories of taxpayers can avail of the GST amnesty scheme:

  1. Taxpayers who have already paid tax through FORM GSTR-3B
    • If the payment was made before 1st November 2024, it will be considered valid for amnesty.
    • However, payments made after this date must be through FORM GST DRC-03.
  2. Taxpayers who have pending tax liabilities under Section 73
    • They must pay their due tax to avail of interest and penalty waiver.
  3. Taxpayers who have filed appeals against consolidated adjudication orders
    • If an appeal covers periods both inside and outside the amnesty period, the taxpayer can withdraw only the portion related to the amnesty period (FY 2017-18 to 2019-20).

Procedural Requirements

The scheme specifies clear steps for taxpayers to follow in order to claim amnesty benefits:

A. Payment of Tax Liability

  • If the taxpayer already paid tax before 1st November 2024 via GSTR-3B, it will be considered valid.
  • If payment is made on or after 1st November 2024, it must be done using FORM GST DRC-03.

B. Withdrawal of Appeals

  • If a taxpayer has filed an appeal covering multiple financial years, they can partially withdraw the appeal for the period covered under Section 128A (FY 2017-18 to 2019-20).
  • The appellate authority will continue proceedings for the periods beyond the amnesty coverage.

Key Clarifications from CBIC

The CBIC issued Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax to clarify various issues faced by taxpayers:

A. Treatment of Past Payments (FORM GSTR-3B)

  • Taxpayers who paid tax via FORM GSTR-3B before 1st November 2024 are eligible for amnesty.
  • Post 1st November 2024, payments must be made through FORM GST DRC-03.

B. Appeal Withdrawal Process

  • If an appeal covers both eligible (FY 2017-18 to 2019-20) and non-eligible periods, the taxpayer needs to:
    • Withdraw the appeal for the eligible period.
    • Continue the appeal for the non-eligible period.

C. No Refund for Taxes Already Paid

  • No refund will be granted for taxes, interest, or penalties already paid before the introduction of Rule 164.
  • If a demand notice covered both amnesty and non-amnesty periods, only the eligible period gets relief.

Changes Introduced in Rule 164 (via Notification No. 11/2025)

  • Modification in Rule 164(4):
    • Taxpayers must pay tax only for the period covered under Section 128A.
    • Partial appeal withdrawal is allowed.
  • Insertion of Explanation in Rule 164(4):
    • If a demand covers both eligible and non-eligible periods, the taxpayer will not receive a refund for taxes already paid.
  • Addition to Rule 164(7):
    • Instead of withdrawing a full appeal, taxpayers can notify the appellate authority that they wish to withdraw only for the amnesty period.
Understanding the GST Tax System in India: Essential Do’s and Don’ts

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Introduction to the GST Tax System in India

The Goods and Services Tax (GST) represents a significant reform in the Indian tax landscape, having been implemented on July 1, 2017. This comprehensive indirect tax system was introduced to create a unified tax structure that eliminates the complexity of multiple taxes imposed by both the central and state governments. Prior to GST, the Indian taxation system was fragmented, with various layers of taxes, leading to confusion for businesses and consumers alike. The introduction of GST aimed to harmonize the taxation process across the country, making it easier to comply with tax regulations.

The primary objective of the GST system is to simplify the taxation framework by adhering to a destination-based approach. This system ensures that the tax revenue is collected at the place of consumption rather than the place of origin, which significantly encourages inter-state trade. Moreover, GST aims to eliminate the cascading effect of taxation, commonly referred to as “tax on tax,” which plagued the previous system. This necessary reform not only benefits businesses by reducing tax liability but also translates to lower prices for consumers, fostering more robust economic growth.

GST encompasses a broad range of goods and services, streamlining the taxation process for a variety of sectors. Its implementation also involves an extensive technology-driven infrastructure that supports compliance, such as online registration, filing returns, and payment of taxes. This transformation is significant in enhancing transparency, as it allows for real-time tracking of transactions and easier audits. The efficiency brought about by the GST system is expected to play a crucial role in bolstering the Indian economy and attracting both domestic and foreign investments, thereby paving the way for sustained economic development.

Key Features of the GST System

The Goods and Services Tax (GST) system in India is characterized by its multi-tier structure, encompassing Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). This three-pronged approach ensures that both the central and state governments receive fair revenue from the consumption of goods and services. Under this structure, CGST is levied by the central government on intra-state sales, while SGST is charged by the respective state government. Conversely, when transactions occur between states, IGST is applied, streamlining the tax process across regional borders.

Another crucial aspect of the GST framework is the concept of Input Tax Credit (ITC). This feature allows businesses to claim credit for the tax paid on inputs, which can be offset against the tax liability on subsequent sales. By doing so, GST significantly reduces the cascading effect of taxation, promoting transparency and efficiency within the tax system. The ability to avail ITC encourages compliance and ensures that businesses do not bear the burden of double taxation, thus facilitating a smoother flow of credit throughout the supply chain.

To ensure effective implementation of the GST regime, certain thresholds for registration have been established. Businesses whose annual turnover exceeds a specified limit are required to obtain GST registration, enabling them to collect and remit tax on their sales. This threshold varies across different states and sectors, taking into account the unique economic conditions and needs of those regions. Furthermore, smaller enterprises may enjoy the option of a composition scheme, which allows them to pay a fixed percentage of turnover as tax, simplifying compliance for small businesses.

In summary, the key features of the GST system, encompassing its multi-tier structure, the Input Tax Credit mechanism, and the registration thresholds, collectively contribute to creating a more organized and efficient tax system in India.

Advantages of the GST Tax System

The Goods and Services Tax (GST) system in India has transformed the nation’s tax structure by promoting efficiency and transparency. One of the primary benefits of this system is the seamless flow of goods and services across state lines. Prior to GST, the existence of multiple tax layers created complications for businesses, leading to unnecessary delays and increased costs. With the implementation of a unified GST, inter-state transactions have become simpler, allowing businesses to operate more efficiently and reduce logistics costs.

Furthermore, the GST tax structure enhances transparency in taxation. It mandates the use of technology for compliance and encourages businesses to maintain proper documentation. This digital approach helps in tracking transactions effectively, thereby reducing tax evasion and fostering a culture of accountability. Stakeholders benefit from real-time access to tax information, which ultimately supports informed business decisions.

For consumers, the implementation of GST has led to a more rationalized tax structure on goods and services. In many cases, the end consumers have experienced a lowering of effective tax rates. This reduction directly affects their purchasing power, allowing them to enjoy goods and services at more affordable prices. Additionally, the clear tax categorizations assist consumers in understanding how much tax they are paying on various products, thus driving informed choices.

Moreover, the GST system simplifies compliance for businesses, particularly small and medium enterprises (SMEs). The previous tax regime involved complex processes and multiple filings, which were often cumbersome for smaller entities. With GST, tax compliance has become more streamlined, reducing the regulatory burden and allowing SMEs to focus on growth and expansion. This boost in business efficacy is expected to positively impact overall economic development.

Common Mistakes to Avoid in GST Compliance

The Goods and Services Tax (GST) system in India has introduced significant changes to the taxation landscape. However, navigating this complex framework can lead to common mistakes that businesses must be wary of to ensure compliance and avoid financial penalties. One prevalent error is the late filing of GST returns. Timely filing is crucial, as delays can incur hefty penalties and interest charges. For instance, failing to file monthly returns within the stipulated deadline can result in a fine that accumulates over time, significantly impacting a business’s cash flow.

Another frequent mistake involves the incorrect classification of goods and services. The GST framework outlines specific categories which determine the applicable tax rates. Misclassifying a product can lead to underpayment or overpayment of taxes. As an example, a business might classify a product as 5% GST applicable when it actually falls under a 12% slab. This misclassification can create compliance issues during audits and ultimately result in financial loss and reputational damage.

Failing to claim Input Tax Credits (ITC) correctly is yet another critical mistake. Businesses must ensure they correctly identify and claim ITC for purchases aligned with their taxable supplies. Not adhering to the guidelines stipulated, such as claiming credits for ineligible purchases or failing to record sales and purchases accurately, can lead to ITC denials during assessments. An example could include a service industry not claiming ITC for services related to business operations, resulting in an avoidable tax burden.

In summary, avoiding these common mistakes—late filing, incorrect classification, and improper ITC claims—is essential for businesses to enhance their GST compliance and mitigate any adverse implications that might arise from errors within the taxation framework.

Best Practices for GST Compliance

Ensuring compliance with the Goods and Services Tax (GST) system in India is essential for businesses looking to avoid penalties and maintain a good standing with tax authorities. One of the fundamental practices for achieving GST compliance is maintaining accurate records. Businesses should establish a systematic approach to document every transaction, including sales, purchases, and expenses. This is crucial because precise records are essential for filing accurate tax returns and claiming input tax credits, ultimately contributing to seamless financial management.

Timely filing of GST returns is another significant practice that organizations must adhere to. The GST framework requires businesses to file returns on a monthly or quarterly basis, depending on their turnover. Late filing can attract fines and interest, affecting the financial health of the company. Therefore, setting internal deadlines a few days before the due date can help ensure all necessary information is compiled and verified well in advance, preventing any last-minute rush.

Staying updated with the latest GST amendments and notifications is equally vital for compliance. The GST system is continuously evolving, with regular updates introduced by the government. Businesses should subscribe to official GST portals, newsletters, or updates from reputable sources to ensure they are aware of any changes that may impact their operations. Additionally, participating in workshops or seminars focused on GST can further enhance a business’s knowledge and readiness to adapt to new requirements.

Lastly, seeking professional assistance whenever necessary is a prudent practice. Tax consultants or professionals specializing in GST can provide guidance tailored to a business’s specific circumstances, making compliance more manageable. By adopting these best practices, businesses can effectively navigate the complexities of the GST system, ultimately fostering a transparent and compliant financial environment.

Do’s of GST Compliance

To ensure smooth navigation through the Goods and Services Tax (GST) system in India, businesses must adhere to certain essential do’s that facilitate compliance and enhance efficiency. One of the primary recommendations is to maintain proper documentation. Accurate records of all transactions, including sales and purchases, are crucial. This not only simplifies the process of filing returns but also serves as a protective measure during audits. Each invoice must be preserved meticulously, ensuring that it includes all necessary details like GSTIN, amounts, and applicable tax rates.

Another vital do is to file GST returns on time. The GST framework imposes strict deadlines for various forms of returns that businesses need to submit periodically. Late submissions can result in penalties and interest charges, complicating an otherwise straightforward tax process. Using calendar reminders or automated systems can help businesses be punctual in their filing obligations, fostering a culture of compliance.

Furthermore, understanding the GST rates applicable to the goods and services offered is essential. Each product or service is assigned a specific GST rate which can vary from zero to 28%. Businesses should be well-informed about these classifications to appropriately charge customers and claim input tax credits. Regular revisions to tax slabs make it important to keep abreast of any changes to ensure compliance.

Lastly, harnessing technology for tracking and compliance purposes has become increasingly advantageous. Various software solutions can streamline the process of invoice generation, record keeping, and return filings. These tools not only reduce the risk of human error but also enable businesses to stay updated with the latest GST rules and regulations. By integrating these methods into regular business practices, entities can enhance their adherence to the GST system effectively.

Don’ts of GST Compliance

Understanding the Goods and Services Tax (GST) system is critical for businesses to ensure compliance and avoid penalties. Among the essential guidelines, certain actions stand out as crucial don’ts that individuals and organizations should be wary of. First and foremost, opting for a composition scheme without a comprehensive understanding can lead to significant issues. The composition scheme is designed for small businesses that are looking for a simplified tax compliance structure; however, this scheme also limits certain tax benefits. Therefore, businesses must evaluate their eligibility carefully before committing.

Another common pitfall is neglecting the importance of staying updated with the latest GST laws. Tax regulations and compliance requirements are subject to change, and businesses that fail to keep abreast of these changes risk non-compliance. Regularly reviewing notifications and changes released by the GST Council and consulting with tax professionals can help mitigate this risk. Such diligence ensures that businesses do not inadvertently find themselves in violation of GST norms.

Moreover, misreporting income and expenses poses another significant risk. Accurate reporting is essential for maintaining compliance with GST regulations. Inaccurate reporting—whether intentional or accidental—can lead to hefty fines and penalties. Maintaining proper records and ensuring they align with GST filing requirements is paramount. Businesses should invest in robust accounting systems or seek assistance from qualified professionals to ensure precise financial reporting.

In closing, adhering to these don’ts within the GST framework is vital for maintaining compliance. A thorough understanding of compliance requirements, careful selection of tax schemes, continual education on legislative changes, and diligent financial reporting practices are imperative for businesses. By avoiding these critical missteps, organizations can navigate the complexities of the GST system more effectively and cultivate a sustainable operational framework.

Impact of GST on Small and Medium Enterprises (SMEs)

The Goods and Services Tax (GST) has significantly transformed the business landscape in India, particularly for small and medium enterprises (SMEs). One of the primary impacts of GST on SMEs is the simplification of the tax structure. Before GST, SMEs had to navigate a complex array of central and state taxes, leading to greater compliance costs and administrative burdens. GST replaces multiple indirect taxes with a single tax framework, making it easier for SMEs to comply with tax regulations.

Despite these advantages, the implementation of GST has posed challenges for many SMEs. The transition requires businesses to adapt to digital tax filing and maintain detailed records, which can be daunting for smaller companies that may lack the necessary resources or expertise. Additionally, some SMEs have reported cash flow issues post-GST implementation due to delays in obtaining input tax credits. This aspect can adversely affect operations, especially for businesses that rely on timely cash flow to sustain their activities.

On the other hand, GST provides SMEs with greater market access. By reducing the burden of state-specific taxation, SMEs can trade across state borders more freely, opening up new markets and customer bases. This enhanced mobility can enable SMEs to compete more effectively with larger corporations. Furthermore, the unified tax system is designed to promote fair competition, allowing smaller players to enjoy a level playing field against their larger counterparts.

In conclusion, while SMEs face certain challenges in adapting to the GST regime, the overall impact of GST can foster growth and development by enabling greater competitiveness and facilitating broader market access. As SMEs continue to navigate the complexities of GST compliance, the long-term benefits may outweigh the initial hurdles, ultimately contributing to the expansion of this vital sector within the Indian economy.

Future of GST in India: Trends and Changes

The future of the Goods and Services Tax (GST) in India appears to be shaped by significant trends and anticipated changes that aim to enhance the overall efficiency of the tax system. As the government continues to assess the GST framework, various reforms are on the horizon, focusing on addressing the complexities and challenges that taxpayers currently face. One key aspect of these reforms is the simplification of compliance processes, ultimately making it easier for businesses to navigate tax obligations.

Technological advancements are expected to play a crucial role in the evolution of the GST system. The integration of digital tools and platforms will facilitate more streamlined tax filing and payment processes. The use of artificial intelligence and machine learning is likely to become more prevalent, enabling both taxpayers and tax authorities to better manage compliance, detect anomalies, and reduce the potential for tax evasion. This shift towards technology ensures that compliance is not only efficient but also minimizes the administrative burdens placed on businesses.

Moreover, the government is actively working to address the issues arising from the existing GST framework, including the multiplicity of tax rates and compliance burdens on small and medium enterprises (SMEs). Anticipated policy changes may include the introduction of a unified tax structure or amendments to tax slabs that provide relief to specific sectors. Regular stakeholder consultations and feedback loops will also be crucial in informing these changes, with a focus on ensuring that the GST system remains equitable and conducive for growth.

In conclusion, the future of GST in India looks promising, with a combination of technological innovations and policy reforms aimed at fostering a more efficient and taxpayer-friendly environment. Keeping abreast of these developments will be vital for businesses to adapt and thrive within this evolving tax landscape.

Attention – Advisory on IMS
Attention – Advisory on IMS

Oct 14th, 2024

 

      • Invoice Management System (IMS) is made available to taxpayers from Today, 14th Oct, 2024. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14th Oct, 2024. The first GSTR-2B would be generated for the return period Oct’24 on 14thNovember, 2024 considering action taken on Invoice Management System. It may be noted that it is not mandatory to take action on invoices in IMS dashboard for GSTR-2B generation.

 

Thanking You,
Team GSTN